Question 1

A company that is using extrinsic motivation as an output control mechanism will most likely:

Accepted Answer

A)   organize training sessions for employees.
B)   cut budgets during recessions.
C)   implement a peer review system.
D)   threaten to lay off employees if they do not achieve targets.E) None of the above
F) A) and D)

Question 2

What are the characteristics of organic organizations?

Accepted Answer

Organic organizations have a low degree ...

Question 3

How does a firm's corporate-level strategy impact its organizational structure?

Accepted Answer

Firms that follow a single-business or d...

Question 4

Define span of control.How is it influenced by an organization's hierarchical structure?

Accepted Answer

The number of levels of hierarchy determ...

Question 5

_____ organizations are characterized by a high degree of specialization and formalization, and tall hierarchies that rely on centralized decision making.

Accepted Answer

A)   Organic
B)   Virtual
C)   Mechanistic
D)   FlatE) A) and D)
F) A) and C)

Question 6

Which of the following statements about an organization's culture is NOT true?

Accepted Answer

A)   A positive culture motivates employees by appealing to high ideals.
B)   A strong monitoring and supervision mechanism is needed to enforce the culture.
C)   A positive culture encourages employees to make decisions not only with their heads but also with their hearts.
D)   Employees feel that they are part of a larger community by internalizing the firm's values and norms.E) B) and C)
F) All of the above

Question 7

Which of the following characteristics of McDonald's best supports the fact that it is a mechanistic organization?

Accepted Answer

A)   It frequently ranks among the top 500 companies to work for.
B)   Its communication lines are bottom-up and well defined.
C)   Its decision power is spread across the organization.
D)   Its job descriptions are very descriptive.E) All of the above
F) B) and C)

Question 8

What are the shortcomings of the matrix organizational structure?

Accepted Answer

The matrix organizational structure is u...

Question 9

_____ describes the collectively shared values and norms of an organization's members.

Accepted Answer

A)   Competitive advantage
B)   Organizational structure
C)   Organizational culture
D)   Core competencyE) None of the above
F) B) and D)

Question 10

What is the role of hierarchy in determining organizational structure? Explain with an example.
B. If many levels of hierarchy exist between the front-line employee and the CEO in Firm A, it has a tall structure. In contrast, if there are few levels of hierarchy in Firm B, it has a flat structure.

Accepted Answer

Students' answers will vary.Hierarchy de...

Question 11

Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?

Accepted Answer

A)   It allows the firm to create incentives to foster process innovation in order to drive down cost.
B)   It allows the firm to reduce its cost below that of competitors while offering acceptable value.
C)   It allows the firm to constantly upgrade core competencies in R&D, innovation, and marketing.
D)   It allows the firm to nurture and constantly upgrade necessary core competencies in manufacturing and logistics.E) None of the above
F) C) and D)

Question 12

What are the drawbacks of adopting a functional strategy?

Accepted Answer

While certainly attractive, the function...

Question 13

What is a simple organizational structure? Explain with an example.

Accepted Answer

Students' answers will vary.A simple org...

Question 14

How does an unrelated-diversification strategy differ from a related-diversification strategy?

Accepted Answer

Managers using the multidivisional organ...

Question 15

_____ organizations have a low degree of specialization and formalization as well as a flat organizational structure.

Accepted Answer

A)   Mechanistic
B)   Centralized
C)   Organic
D)   Top-downE) B) and C)
F) A) and C)

Question 16

The relationship between strategy and structure that directly impacts a firm's performance is _____.

Accepted Answer

A)   dynamic
B)   independent
C)   static
D)   unpredictableE) B) and C)
F) B) and D)

Question 17

Which of the following real-world scenarios best exemplifies formalization?

Accepted Answer

A)   Zappos' focus on allowing its customer service employees to use their own approach rather than depend on scripts
B)   McDonald's use of standard operating procedures across the world
C)   W.L. Gore's associates organizing themselves in project-based teams that are led by sponsors, not bosses
D)   Yahoo's decision to fire its CEO after incurring huge lossesE) A) and D)
F) A) and C)

Question 18

What is organizational inertia?

Accepted Answer

Organizational inertia refers to a firm'...

Question 19

Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization?

Accepted Answer

A)   It allows a high level of integration.
B)   It helps contain the core competencies within a strategic business unit (SBU) .
C)   It leads to competition between SBUs.
D)   It helps evaluate each SBU as a standalone profit-and-loss center.E) C) and D)
F) A) and C)

Question 20

A firm that uses a structure that is organized along different business functions such as HR, R&D, Sales, and Marketing and also along different geographical areas such as different countries of the world is most likely using a _____ structure.

Accepted Answer

A)   global matrix
B)   multidivisional
C)   functional
D)   simpleE) All of the above
F) B) and D)

Exam 11: Organizational Design: Structure, Culture, and Control

_____ organizations have a low degree of specialization and formalization as well as a flat organizational structure.

Correct AnswerverifiedShow Answer

A firm that uses a structure that is organized along different business functions such as HR, R&D, Sales, and Marketing and also along different geographical areas such as different countries of the world is most likely using a _____ structure.

Correct AnswerverifiedShow Answer

Why does a firm use an organic organization combined with a functional structure when implementing a differentiation strategy?

Correct AnswerverifiedShow Answer

_____ organizations are characterized by a high degree of specialization and formalization, and tall hierarchies that rely on centralized decision making.

Correct AnswerverifiedShow Answer

Define span of control.How is it influenced by an organization's hierarchical structure?

Correct AnswerverifiedThe number of levels of hierarchy determ...View AnswerShow Answer

Why should managers using the M-form organizational structure to support a related-diversification strategy ideally concentrate decision making at the top of the organization?

Correct AnswerverifiedShow Answer

Which of the following characteristics of McDonald's best supports the fact that it is a mechanistic organization?

Correct AnswerverifiedShow Answer

What is a simple organizational structure? Explain with an example.

Correct AnswerverifiedStudents' answers will vary.A simple org...View AnswerShow Answer

What are the drawbacks of adopting a functional strategy?

Correct AnswerverifiedWhile certainly attractive, the function...View AnswerShow Answer

How does a firm's corporate-level strategy impact its organizational structure?

Correct AnswerverifiedFirms that follow a single-business or d...View AnswerShow Answer

_____ describes the collectively shared values and norms of an organization's members.

Correct AnswerverifiedShow Answer

What are the shortcomings of the matrix organizational structure?

Correct AnswerverifiedThe matrix organizational structure is u...View AnswerShow Answer

Which of the following real-world scenarios best exemplifies formalization?

Correct AnswerverifiedShow Answer

What is the role of hierarchy in determining organizational structure? Explain with an example. B. If many levels of hierarchy exist between the front-line employee and the CEO in Firm A, it has a tall structure. In contrast, if there are few levels of hierarchy in Firm B, it has a flat structure.

Correct AnswerverifiedStudents' answers will vary.Hierarchy de...View AnswerShow Answer

The relationship between strategy and structure that directly impacts a firm's performance is _____.

Correct AnswerverifiedShow Answer

What are the characteristics of organic organizations?

Correct AnswerverifiedOrganic organizations have a low degree ...View AnswerShow Answer

How does an unrelated-diversification strategy differ from a related-diversification strategy?

Correct AnswerverifiedManagers using the multidivisional organ...View AnswerShow Answer

Which of the following statements about an organization's culture is NOT true?

Correct AnswerverifiedShow Answer

A company that is using extrinsic motivation as an output control mechanism will most likely:

Correct AnswerverifiedShow Answer

What is organizational inertia?

Correct AnswerverifiedOrganizational inertia refers to a firm'...View AnswerShow Answer

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The number of levels of hierarchy determ...
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Students' answers will vary.A simple org...
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While certainly attractive, the function...
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Correct Answer
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Firms that follow a single-business or d...
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Correct Answer
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Correct Answer
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The matrix organizational structure is u...
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Correct Answer
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Correct Answer
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Students' answers will vary.Hierarchy de...
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Correct Answer
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Correct Answer
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Organic organizations have a low degree ...
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Correct Answer
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Managers using the multidivisional organ...
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Correct Answer
verified

Correct Answer
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Correct Answer
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Organizational inertia refers to a firm'...
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